TECH NEWS – Led by Jensen Huang, the company is becoming increasingly ambitious, and the Taiwanese chip manufacturer should follow suit.
Nvidia is advancing rapidly in the field of AI and appears confident about future demand for AI infrastructure. In an interview with local media, Huang revealed that TSMC plans to increase production by over 100% within the next decade. This expansion alone will satisfy Nvidia‘s needs, suggesting that Huang expects the AI boom to last much longer. TSMC‘s upcoming manufacturing projects and increased capital expenditures are examples of the industry’s expected demand. According to Huang, TSMC‘s production capacity could grow by more than 100% over the next ten years. This would be the largest infrastructure investment in human history and still wouldn’t meet Nvidia‘s needs.
TSMC‘s manufacturing capacity expansion plans have increased significantly in recent quarters as the company has taken geopolitical concerns into account, leading to substantial investments in regions such as the EU, Japan, and the United States. TSMC plans to build a U.S. supply chain, representing a massive $250 billion investment in advanced packaging, semiconductors, and research and development centers. TSMC‘s Arizona factories are currently transitioning to 3-nanometer manufacturing, and the Taiwanese giant is planning to transition to A16 with an N-2 policy in mind.
The important point is that Grace, Blackwell, and Vera Rubin alone occupy a significant portion of TSMC‘s production lines. This is why Nvidia has become the chip giant’s largest customer in just a few years, surpassing Apple. Since TSMC now allows customers to pay for capacity in advance, it’s clear that Nvidia and other high-performance computing (HPC) customers will ultimately receive most of the production lines put into operation in the future. This is another sign of the aggressive development of AI infrastructure.
Nvidia dwarfs its competitors in size, so competition from ASIC manufacturers or AMD is not a major factor for the company. Another important factor is that Huang’s connections with Taiwanese suppliers and others around the world give the company earlier access to production lines.
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